India is expecting $2 billion in new investments to be made over the next eight years under the New Exploration Licensing Policy (NELP) IX program, which offers 34 blocks spread over 88,800 sq km (34,286 sq mi), 65% of which are available for the first time. On offer are eight deepwater blocks, seven shallow water blocks, and 19 onshore blocks.
Foreign participation has been minimal in the exploration and development of India’s offshore resources due, primarily, to the regulatory environment. Officials, however, assure that it has taken into consideration concerns expressed by E&P companies, in the preparation of the bid documents for the recent licensing round.
Addressing the NELP IX road show in Singapore, India’s petroleum and natural gas minister Murli Deora assured investors of a level playing field, dismissing suggestion of any favor towards the country’s public or private sector companies, reportedContributing Editor Gurdip Singh. “Invest in Indian E&P and become partners in our progress and our efforts to enhance the energy security of the country,” said Deora, who headed a high-level delegation seeking E&P participation as well as investors from Singapore-based financial institutions. Singh’s full report from the roadshow stop in Singpaore begins on page 52.
Since its inception in 1997-98, NELP has secured about $15.6 billion in E&P investment, resulting in 87 oil and gas discoveries in a total of 26 blocks with reserves of more than 640 million metric tons of oil equivalent.
Although the Indian government views NELP as a success, its intention is to move to the Open Acreage Licensing policy (OALP) regime in the near future. Under this policy, officials say companies can choose any block for offer at any time, without waiting for the regular bid rounds under NELP. The blocks will be awarded to the party giving the best bid at any time of the year, officials say. To implement this policy, the Directorate General of Hydrocarbons is creating a National Data Repository.
To address India E&P policy, technical issues, among other topics, PennWell is holding its inauguralOffshore India and Unconventional Oil & Gas India conference & exhibition in Mumbai, India, Sept. 14-16, 2011. As co-chair of the conference, I invite you to submit an abstract for the event. To be considered for a technical session, please submit your 100-400 word abstract by Feb. 18.
Submission guidelines are available atwww.offshoreoilindia.com/index/conference-information.html.
Rig market review
At the time of this writing, industry had ordered about 10 floaters and 20 jackup rigs since 4Q 2010. This compares to having ordered only 5 floaters and 6 jackups over the preceding 12 months. Most of these assets are being built on spec, as drillers look to capitalize on favorable shipyard pricing. However, the worldwide rig market continues to suffer from oversupply as new rig deliveries outstrip demand, according toMathew Donovan, marine market analyst, ODS-Petrodata. About 104 mobile offshore drilling rigs are under construction or on order around the world, with 57 of these rigs scheduled for delivery this year. Only 30 of the rigs set for delivery this year have contracts lined up. Donovan’s global rig market review and analysis begins on page 36.
Subsea Tieback Forum & Exhibition
The annual Subsea Tieback Forum & Exhibition returns to San Antonio Feb. 22-24, 2011, at the Henry B. Gonzales Convention Center. More than 3,000 attendees and 150 exhibitors are expected at this year’s conference. You can learn more about the event in the preview onpage 70. We look forward to seeing you there!
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